August 28, 2016

The Hottest Market Ever Doesn’t Just Apply To Owning

WFAA reports from Texas. “This summer, we have been exploring the extraordinary things happening in North Texas real estate. But the ‘hottest market ever’ doesn’t just apply to owning. Rents — and new rental developments — are rising fast, too. We visited a 400+ unit project being erected in Frisco called Jefferson Stonebriar. Models feature more natural light and an unusually airy feeling for an apartment. In addition, they are increasingly using premium finishes. ‘Today, we have 10-, 12-, 14-foot ceilings,’ said Brad Taylor, the regional managing partner at JPI. And he says JPI is working on a project that includes apartments with even higher ceilings.”

“Taylor acknowledges that the new level of amenities fetches a new level of rent. Many of the apartment units under construction in DFW are considered ‘luxury’ developments. North Texas is a standout in apartment construction. ‘It is the number-one building center in the U.S.,’ said Greg Willet, chief economist for RealPage. He told us there are currently nearly 50,000 apartment units under construction here, which is a staggering figure. That’s is about one-in-ten of every apartment on the way across the country,’ Willet said.”

The Star Tribune in Minnesota. “Homebuilders are slowly gaining ground on apartment developers in the Twin Cities. So far this year, single-family permits are up 10.4 percent compared with the previous year, while multifamily units — mostly rental apartments — have increased only 4.4 percent, a new report from the Builders Association of the Twin Cities said. Those gains signal a major shift for housing development in the metro area. Rental apartments led the construction recovery and have dominated the industry for the past several years. But that’s changing, with demand for new single-family houses on the rise and concerns that some rental markets are on the verge of saturation.”

“But this month proved an exception to the trend because of permitting for two big apartment projects. In August, homebuilders in the 13-county metro were issued 465 permits to build 888 units. That represents a 1.6 percent increase in single-family permits and a 48 percent increase in multifamily units.”

The Denver Business Journal in Colorado. “Where is Denver’s most expensive neighborhood to rent? Right where it’s been for awhile: In the Golden Triangle neighborhood near downtown, where the median (half rent for more, half for less) monthly rent is $2,200 in August, according to apartment rental website Zumper. And prices are falling across Denver: The median price of one bedroom units fell 3.2 percent to a median of $1,200 in the city, while two bedroom units dropped 2.9 percent to $1,650, Zumper said this month.”

“That $2,200 monthly median rent in the Golden Triangle is actually down $100 from June, according to Zumper’s numbers.”

The Houston Chronicle in Texas. “The average rent for a Houston-area apartment fell in July as developers added units at the same time job growth has slowed, a new report shows. The average rent of $1,082 in July was 2.2 percent lower than the average of $1,107 a year earlier, according to research firm Axiometrics. Rents fell in 12 of the 25 local regions tracked by Axiometrics.”

“This year, 24,863 new units are expected to be completed across the Houston area and another 11,678 in 2017, according to Axiometrics. Annual job growth, meanwhile, slowed to 5,200 in June, down from a recent peak of 117,800 in 2014.”

From Hawaii News Now. “Hawaii’s hot housing market is only getting hotter. But there’s one group of renters who are faring quite well: College students. Jillian Glenn, a University of Hawaii at Manoa political science major, started her senior year on Monday. And after a month of searching for the perfect place, she and her roommates just signed the lease on a rental home. ‘I used to live on campus. I think it’s like $800 a month for not very good conditions,’ he said. ‘So for me, I’d rather pay the same price to pick the place I want with nicer conditions.’”

“College students are finding that their strength is in their numbers. Developer Peter Savio privately operates off-campus student apartments, and this is the first school year he’s seeing vacancies. He says the reason for the empty rooms is simple. ‘A dorm is more expensive. Students can actually rent a two-bedroom apartment for $1,500 and they can put four kids in it and they are each spending between $400-$500,’ Savio said.”

“Meanwhile, there’s no shortage of rooms on campus this year. University of Hawaii officials say the school was able to accommodate every student in need of a dorm. Looking ahead, it appears UH-Manoa could get even more housing competition. A developer has taken out permits to demolish a nearby shopping center to build another private high-rise dorm.”

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Comment by TheCentralScrutinizer
2016-08-28 15:52:15
Comment by 2banana
2016-08-28 20:00:01

Sounds like diversity and multiculturalism punched them right in the face.

Comment by TheCentralScrutinizer
2016-08-28 20:14:57

Nothing as exotic as all that, just a plain old crazy hobo.

Comment by azdude
2016-08-28 15:57:57

“The company’s cash and equivalents have fallen to $276 million from $1.8 billion one year ago, Sears said Thursday.”

“Last summer, Sears, a struggling retailer led by hedge fund manager Eddie Lampert, who is also its biggest shareholder, created the REIT to spin off 235 of its best Sears and Kmart locations, most of which Seritage then leased back to the company, along with a number of real estate joint ventures with developers. The move generated $2.7 billion in much-needed cash for Sears, which has been attempting a turnaround to stem enormous sales declines and losses that have been going on for years.”

Where did all the money go from selling off the real estate?

Something seems very shady with this company.

Comment by TheCentralScrutinizer
2016-08-28 16:14:02

Hookers and blow would be my guess…

Comment by kaiboy
2016-08-28 16:15:18

Hawaii housing market hot? Lol, don’t think so. Check this article

Page 4 has the money graphic (anatomy of a condo), a condo tower that was at least half foreign sales and a host of flippers. What was heat is now going up in smoke!

Comment by Ben Jones
2016-08-28 17:30:48

I posted that when it came out:

“I’ve seen a 30-percent appreciation in the better neighborhoods three years in a row,” says appraiser and real estate expert Stephany Sofos. “Everybody says we’re not in a bubble. We’re in a bubble.”

Comment by azdude
2016-08-28 16:34:16

“Asia set to open mixed as traders digest Yellen’s speech” CNBC

Comment by spmk
2016-08-28 17:40:12

“He told us there are currently nearly 50,000 apartment units under construction here, which is a staggering figure.”

Staggering indeed. I’m not familiar with North Texas. Is there a lot of business and growth and people to live in all those apartments?

Comment by azdude
2016-08-28 17:52:05


Comment by spmk
2016-08-28 17:56:02

Oh I see. Frisco’s just a little bit north of Dallas. For some reason I thought it might have been some boom-town in the middle of nowhere. Still, 50,000 apartments is a lot.

Comment by spmk
2016-08-28 17:59:23

From wikipedia about the town of Frisco:

“The city population was 116,989 at the 2010 census. As of July 1, 2016, the city had an estimated population of 156,320. Frisco was the fastest-growing city in the United States in 2009, and also the fastest-growing city in the nation from 2000 to 2009. In the late 1990s, the northern Dallas–Fort Worth Metroplex suburban development tide hit the northern border of Plano and spilled into Frisco, sparking explosive growth into the 2000s. Like many of the cities located in the booming northern suburbs of Dallas, Frisco serves as a bedroom community for many professionals who work in the Dallas–Fort Worth Metroplex.”

Comment by palmetto
2016-08-28 18:20:24

I think they’re preparing for all the hordes moving to Texas if Hillary gets elected, on account of the state may decide to secede. I’d actually consider it myself, no joke.

Comment by TheCentralScrutinizer
2016-08-28 20:16:46

Yeah, but you’d have to live with Texans…

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Comment by Raymond K Hessel
2016-08-28 18:20:14

Homelessness is the new black in our Obama-Fed-Goldman Sachs “recovery.”

Comment by Raymond K Hessel
Comment by Raymond K Hessel
2016-08-28 18:51:26

When the Fed causes a dollar collapse, those crazy preppers will ride out the chaos a lot better than your average complacent ‘Murican.

Comment by 2banana
2016-08-28 19:58:21

Hillary should love them.

They are very green.

Comment by phony scandals
2016-08-28 20:44:21


Yes Piven?

Did you see the fiction this guy is peddling?

“Anybody with a peanut-sized brain,” he said, can see that the U.S. economy is in perilous shape because of the national debt, the decline of American manufacturing and the size of the welfare rolls.”

Comment by Raymond K Hessel
Comment by TheCentralScrutinizer
2016-08-28 20:18:10

With a name like wiener, this is to be expected.

Comment by Raymond K Hessel
2016-08-28 21:54:17

With an affiliation like Democrat, this is to be expected.

Comment by TheCentralScrutinizer
2016-08-28 22:50:21

Raymond, you are a broken record. Get a new schtick, ffs.

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Comment by Raymond K Hessel
2016-08-29 05:21:14

If you don’t like me calling out your party’s corruption and sleaze, maybe you shouldn’t be affiliated with them anymore.

Comment by Raymond K Hessel
2016-08-28 19:54:20

Only the bovine stupidity of European and US voters allows crony capitalism to flourish.

Comment by Raymond K Hessel
Comment by Raymond K Hessel
2016-08-28 20:20:47

As we’ve descended deeper into IDIOOCRACY, expect moronic behavior at national parks and polling places to increase.

Comment by spmk
2016-08-28 23:00:45

My apologies, I know I have blabbed a bunch lately, and I’m guilty of posting links.

But is this the Ben’s forum, or the Raymond K Hessel’s forum?

Comment by Bubblebot
2016-08-29 00:11:32

“But is this the Ben’s forum, or the Raymond K Hessel’s forum?”

It’s Ben’s

Comment by Raymond K Hessel
2016-08-29 05:30:28

Last week I didn’t post at all. If Ben ever tells me to post less or avoid certain themes, he’s the moderator and that’s his perogative. On the other hand, if some precious snowflake gets his panties in a twist because I’m rampaging through his liberal la-la land, I’d remind you that the HBB has always been a bastion of free speech and free thought, albeit there should be a housing bubble nexus somewhere.

Comment by PDneXt
2016-08-30 00:37:42

I recommend the Joshua Tree extension. It doesn’t work on iOS though.

Comment by spmk
2016-08-28 23:31:14

Well, shit. If this is basically an open-forum, then here’s some good stuff, free speech.


Rush 1979, instrumental, when they were young. Remember when you were young.

I’m not the biggest Van Halen fan, but this is greate also. ‘86. Some trippy baroque in there.


Comment by phony scandals
2016-08-29 05:06:54


Comment by azdude
2016-08-29 05:16:44

guess what? shocker! All eyes are back on the FED today:

“Fed’s preferred inflation indicator watched on Wall Street on Monday”

Comment by Raymond K Hessel
2016-08-29 05:39:08

A preview of coming attractions once the collectivist kleptocrats of the DNC get their permanent Democrat supermajority.

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